| Thu 11 Mar 2004, 9:54 | | RESULTS FOR THE SIX MONTHS ENDED 31 JAN 04 |
|
WINECORP LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1997/012032/06
JSE Share code: WNE
ISIN: ZAE000027710
("Winecorp")
GROUP FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2004
Financial Results
The financial results of the group for the six months ended 31 January 2004 are
set out below. The interim results have been prepared on the historical cost
basis in accordance with South African Statements of Generally Accepted
Accounting Practice. Accounting policies which have been applied are consistent
with those applied in the previous year.
Although revenue decreased by 8% to R45,5 million, sales volumes have increased
by 18% compared to the same period last year. Volume growth has been achieved
in new markets, and from some existing customers. In addition the growth
achieved in the prior financial year has been maintained during tough trading
conditions.
The levels at which the rand traded during the period under review had an
adverse effect on sales revenue compared to the prior year - the average rate of
exchange at which sales were recorded during the prior year was R15.12 to GBP1,
compared to the current period"s average rate of R11.61 to GBP1. This was
countered at the end of the six months to 31 January 2004 by the sudden
weakening of the rand to R12.88 to GBP1, creating an exchange profit (R0,5
million) on revaluation of debtors at the end of the six months, compared to the
exchange loss of R3,1 million for the six months ended 31 January 2003 (amounts
included in "other income"). Management"s ability to negotiate decreased input
costs and curtail overheads resulted in holding the increase in operating
expenses to only 6%, despite the volume growth. This, combined with continued
efforts to utilise working capital efficiently, resulted in a cash inflow from
operations for the period under review in line with the same period in the prior
year, despite the very different operating profit levels in the two periods.
Finance costs increased due to increased borrowings to finance the plant
expansion and to fund working capital needs over the period.
The results for the six months to 31 January 2004 reflect a loss after taxation
of R0,2 million, which translates to a loss of 0.33 cents per share and a
headline loss of 0.26 cents per share and reflect the impact of the exchange
rate on the export-driven business.
Prospects
Despite the effect of the turnaround in the rand"s value over the past eighteen
months, the team has managed to lower the breakeven point of costs of the
company considerably over the past two years and the company is now well
positioned to take advantage of any opportunities arising from the challenging
trading environment created by the strong currency. The sustained support,
financial and otherwise, of our majority shareholders illustrates their trust in
management"s ability to steer the company through these difficult times.
Winecorp has also embraced Spier"s efforts to be a leader in the field of
creating a sustainable business for all stakeholders and this will be tested by
the WIETA (Wine Industry Ethical Trading Association) audit to be conducted soon
and the ethical practices which will be rolled out to our major suppliers in the
future.
Stellenbosch
11 March 2004
Registered address:
Annandale Road,
Stellenbosch,
7600
Directors:
Executive - NP Carew (Managing Director)
AC Kruger
Non-executive - RG Freese (Chairman)
GJ Knox (Australian)
BS Barraclough (British)
FA Bicker Caarten
ADH Enthoven
Alternate - P McMahon (British)
Secretary:
ML Potgieter (British)
Transfer Secretaries:
Computershare Limited
Auditors:
PricewaterhouseCoopers Incorporated
Sponsor:
Sasfin Corporate Finance
A division of Sasfin Bank Limited
WINECORP LIMITED
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended
ABRIDGED INCOME STATEMENT 31 January 31 January 31 July
2004 2003 2003
R"000 R"000 R"000
Revenue 45,479 49,641 85,747
Other income/(losses) 997 -2,562 -4,729
Operating expenses -45,460 -43,009 -79,250
Operating profit 1,016 4,069 1,768
Finance costs -1,644 -886 -2,508
Operating (loss)/profit before -628 3,184 -740
associates
Share of net loss from associates -119 -92 -
Operating (loss)/profit before -747 3,091 -740
exceptional items
Exceptional items - - 258
Net (loss)/profit before taxation -747 3,091 -482
Taxation 586 -992 55
Net (loss)/profit for the period -161 2,099 -427
Weighted number of shares in issue 49,286 49,366 49,286
(thousands)
(Loss)/earnings per share (cents) -0.33 4.25 -0.87
Headline (loss)/earnings per share -0.26 4.14 -1.40
(cents)
6 Months 6 Months Year Ended
Ended Ended
RECONCILIATION BETWEEN HEADLINE 31 January 31 January 31 July
(LOSS)/PROFIT AND NET (LOSS)/PROFIT 2004 2003 2003
R"000 R"000 R"000
Headline (loss)/profit -128 2,044 -692
Exceptional items - - 258
Profit on disposal of property, plant 103 190 279
and equipment
Goodwill amortisation -136 -135 -272
Net (loss)/profit -161 2,099 -427
As at As at As at
ABRIDGED BALANCE SHEET Saturday, Friday, Thursday,
January 31, January 31, July 31,
2004 2003 2003
R"000 R"000 R"000
Property, plant and equipment 13,967 16,055 15,153
Intangibles 2,123 2,359 2,220
Investment in associates 720 593 837
Long-term loans - 244 502
Deferred taxation 1,254 1,247 668
Current assets 43,815 42,288 44,702
Total assets 61,879 62,786 64,082
Shareholders equity 25,803 28,490 25,964
Long-term liabilities 6,679 6,278 5,942
Related party loans 7,892 1,364 360
Current liabilities 21,505 26,655 31,816
61,879 62,786 64,082
Total number of shares in issue at 49,286 49,366 49,286
year end (million)
Net asset value per share (cents) 52.35 57.71 52.68
6 Months 6 Months Year Ended
Ended Ended
ABRIDGED STATEMENT OF CHANGES 31 January 31 January 31 July
IN OWNER"S EQUITY 2004 2003 2003
R"000 R"000 R"000
Balance at start of period 25,964 26,391 26,391
Attributable (loss)/profit -161 2,099 -427
Balance at end of period 25,803 28,490 25,964
6 Months 6 Months Year Ended
Ended Ended
ABRIDGED CASH FLOW STATEMENT 31 January 31 January 31 July
2004 2003 2003
R"000 R"000 R"000
Cash inflow/(outflow) from operating 570 659 -864
activities
Cash outflow from investing activities -263 -2,291 -1,588
Cash inflow from financing activities 2,463 1,623 484
Net increase/(decrease) in cash and 2,770 -9 -1,968
cash equivalents
Cash and cash equivalents at beginning 1,120 3,088 3,088
of period
Cash and cash equivalents at end of 3,890 3,079 1,120
period
Date: 11/03/2004 09:21:06 AM Produced by the JSE SENS Department
